F&d business europe march april 2018

March/April 2018

Scotch whisky returns to export growth as Irish whiskey ‘Renaissance’ continues

Food & Drink Business Website:

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C o n t e n t s

- 29-32 M EAT & P OULTRY

- 3 M ERGERS & A CQUISITIONS

Consolidation makes European meat industry leaner as Brexit looms.

Coverage of British and international deals.

‘Crisis’- New report shows Brexit impact on Europe’s meat industry.

P AGE 18

Scott McCroskie, MD, The Macallan.

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Denise Morrison, CEO, Campbell Soup Company.

- 7 C OVER S TORY

- 33 N UTRACEUTICALS Focusing on the future – Vitafoods Europe 2018 - 15-17 May 2018, Palexpo Geneva.

Scotch whisky returns to export growth as Irish whiskey ‘renaissance’ continues.

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R EGULARS

Bill Lovette, CEO, Pilgrim’s Pride Corporation.

Processing & Manufacturing. . . . . . . . . . 19 PAGE 5

Andrew McInnes, MD, Müller Milk & Ingredients.

- 17 D ISTILLING

Storage & Logistics . . . . . . . . . . . . . . . . 21 Bottling & Packaging. . . . . . . . . . . . . . . . 23 PAGE 32

Edrington’s £100 million new distillery investment.

Materials & Ingredients . . . . . . . . . . . . 33-36 Stevia use in beverages and foods continues to increase . . . . . . . . 34 8th World Convention on Stevia – June 4-5, 2018 – Berlin . . . 35

Jari Latvanen, CEO, HKScan Group.

Managing Director: Colin Murphy Editor: Mike Rohan Group Operations Manager: Sylvia McCarthy

- 24 B AKERY iba 2018 - stronghold of the international baking industry.

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Jean-Christophe Coutures, CEO, Irish Distillers.

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- 27 M ARKET F OCUS Healthy growth for dried fruit and nuts.

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Karen Betts, CEO, Scotch Whisky Association.

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M E E R R G G E E R R S S M Campbell Soup Company Completes Transformative Acquisition Campbell Soup Company has completed the $6.1 billion acquisition of Snyder’s-Lance to create a $10-billion business with nearly half of its annual net sales in the faster-growing snacks category. To unlock the power of the combined brand portfolio, and achieve both cost and potential revenue opportunities, Campbell is integrating the Pepperidge Farm and Snyder’s-Lance portfolios to create a unified snacking organisation in the US called Campbell Snacks.

Campbell’s global baked snacks product portfolio, including its Pepperidge Farm, Arnott’s and Kelsen businesses, generated approximately $2.5 billion in net sales in fiscal year 2017. Snyder’s-Lance reported $2.2 billion in net sales for the year ended December 30, 2017.

With the addition of Snyder’sLance, snacking will now represent approximately 47% of Campbell’s annual net sales (previously 32 %). Campbell’s soup portfolio will represent approximately 26% of the company’s annual net sales.

Campbell expects to achieve approximately $170 million in cost synergies by end of fiscal 2022. Additionally, Campbell expects to achieve approximately $125 million of Snyder’sLance’s existing cost transformation program.

Denise Morrison, president and chief executive of Campbell

Denise Morrison, president and chief executive of Campbell Soup Company.

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Soup Company, says: “The combination of Campbell and Snyder’s-Lance creates a unique, diversified snacking portfolio of differentiated brands and a large variety of better-for-you snacks for consumers. I am excited about the combination and confident that it will create significant shareholder value through both revenue growth and cost synergies.”

Iceland Seafood International Acquires Oceanpath Iceland Seafood International is acquiring Oceanpath Group, the leading fresh fish company in Ireland. The acquisition marks a significant step in

Iceland Seafood International’s strategy of delivering strong organic growth combined with strategic acquisitions of first rate seafood companies.

Iceland Seafood International has agreed to purchase 67% of Oceanpath Group with management retaining a 33% share.

The purchase price is Eur12.4 million to Eur13.4 million on a debt and cash free basis.

Oceanpath is the largest fresh seafood processor to Irish retailers, offering fresh and smoked seafood to retail customers and wholesalers in their local market. The group operates two factories, Oceanpath which sources, processes and sells fresh and frozen seafood and Dunn’s of Dublin, a premium retail brand best known for its smoked salmon products.

Helgi Anton Eiríksson, chief executive of ISI, comments: “The acquisition of Oceanpath continues ISI’s strategy of growing its value-added activities in Europe. The company’s experienced management and market leading position in Ireland with-

in the fresh fish and smoked seafood market provides for an excellent platform for future growth.”

Danish Crown Becomes European Market Leader in Pepperoni Toppings For Pizzas Danish Crown has acquired the Danish pepperoni giant DKFoods to become the European market leader in pepperoni toppings for pizzas. DK-Foods will operate as a separate business unit under Danish Crown's subsidiary Tulip Food Company and will spearhead the group's global focus on pizza toppings.

Pizza is the favourite choice of fast food in Denmark, and the same is true in many other parts of the world.

Pepperoni is an extremely popular pizza topping, and as part of its 4WD strategy, Danish Crown and its subsidiary Tulip Food Company are pursuing an ambition of becoming the preferred supplier to the European pizza industry.

“In acquiring DK-Foods, we are acquiring a focused and unique company which, since its establishment in 2003, has

enjoyed impressive growth. At Tulip Food Company, our strategic focus internationally is on four categories: bacon, canned products, snacks and pizza toppings, so we're looking forward to incorporating a wellrun, agile and fast-moving business. The acquisition of DKFoods represents a giant leap for-

FOOD & DRINK BUSINESS EUROPE, MARCH/APRIL 2018

ward when it comes to realising our bold ambitions within a category which is experiencing growth in many markets, and the acquisition will bring us even closer to our pizza customers,” comments Kasper Lenbroch, chief executive of Tulip Food Company.

Meadow Foods Strengthens its Portfolio Meadow Foods, the UK’s largest independently owned dairy group and a leading supplier of ingredients to the food industry, has acquired Roil Foods for an undisclosed amount. Based in Wrexham, Wales, Roil Foods manufactures edible dairy-based oils including Organic AMF, Concentrated Butter and Butter Ghee which Meadow Foods does not currently produce.

The ability to manufacture these new products, in addition to Meadow Food’s AMF and butter, will enhance the company’s offering to customers across Europe and rest of world as well as expand the packaging range offered.

Mark Chantler, chief executive of Meadow Foods, comments: “This acquisition will further strengthen our portfolio of quality dairy ingredients and marks the next step in the delivery of the ambitious growth plans we have for the business.

There are obvious operational synergies between the businesses and we’re excited by the opportunity to extend our range and reach into new markets and product lines.”

The announcement follows a strategic investment into Meadow Foods from Paine Schwartz Partners, a leading global food and agribusiness

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M E E R R G G E E R R S S M investment firm. This investment, made in Autumn 2016, was intended to support Meadow Foods’ strategy to grow the business through organic expansion and acquisitions.

Bonduelle Expands North American Presence Bonduelle, the French familyrun company and the world leader in ready-to-use vegetables, in all their forms, has agreed to acquire the Del Monte processed fruit and vegetable business in Canada from Conagra Brands for C$43 million. The acquisition includes the right to use the Del Monte brand on different segments of processed fruits and vegetables and stocks of products marketed

by Conagra.

Conagra’s Del Monte business in Canada, with revenues of approximately C$60 million, will complement Bonduelle Americas Long Life business unit’s canned and frozen vegetable business, which is largely conducted under retailer’s store brands. This is in line with Bonduelle’s strategy to develop its brand activities and expand beyond vegetables to vegetable products.

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even more of its own fresh food and become more competitive for customers on these important everyday products. It will also bring forward the date at which all Morrisons eggs will come from noncaged hens from the current commitment of 2025.

Morrisons is already the largest supermarket customer for British farmers and uniquely makes most of its own fresh food in 17 manufacturing sites and 491 stores, including bakery, seafood, meat, fruit & veg, flowers and chilled processed products.

Andrew Thornber, manufacturing director at Morrisons, says: “The addition of Chippindale Foods to our fresh food manufacturing business will give us the opportunity to build on our deep relationships with British farmers and become even more competitive for our supermarket and wholesale customers.”

McCain Foods Strengthens its Presence in Brazil McCain Foods, the world’s leading producer of frozen

Morrisons Expands Food Production Base UK grocery chain Morrisons has acquired Chippindale Foods, a leading English supplier of free range eggs. The acquisition means that Morrisons will make

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French fries, has agreed to acquire a 49% stake in Brazil-based Forno de Minas, a leader in cheese breads. Operating three production facilities and employing 1000 people in Brazil, Forno de Minas offers a wide range of products including puff

pastry, potato bread, burek, stuffed pasta, lasagne and waffles. The company also exports products to over 15 countries around the world.

sition would raise no competition concerns because the companies' activities do not overlap and they are not active on related markets.

European Commission Clears Acquisition of Unilever's Baking, Cooking and Spreads Business

Givaudan Acquires 40.6% of Naturex

The European Commission has approved, under the EU Merger

Regulation, the Eur6.8 billion acquisition of Unilever's baking, cooking and spreads business of the Netherlands by KKR of the US. Unilever's baking, cooking and spreads business manufactures and sells butter, margarine and other spreads, melanges, dairy cream alternatives and vegetable oils in Europe and worldwide.

Unilever’s spreads business includes brands such as Becel, Flora, Country Crock, Blue Band, I Can’t Believe It’s Not Butter, Rama and ProActiv. It operates across 66 countries around the world. In 2016 the business had a turnover of Eur3.03 billion, EBITDA (before any carveout adjustments under new ownership) of Eur680 million, and assets of Eur1.108 billion.

KKR is a global investment company that offers alternative asset management services to public and private market investors, and provides capital markets solutions for the firm, its portfolio companies and clients. The Commission concluded that the proposed acqui-

FOOD & DRINK BUSINESS EUROPE, MARCH/APRIL 2018

As part of its 2020 strategy to strengthen its capabilities in natural flavour solutions for its customers, Givaudan has agreed to acquire 40.6% of the shares of Naturex, a French public listed company, for a total consideration of Eur522 million.

The agreement is subject to all of the appropriate regulatory approv-als.

Naturex is an international leader in plant extraction and the development of natural ingredients and solutions for the

food, health and beauty sectors.

Naturex is headquartered in Avignon, France and reported sales of Eur405 million in 2017, operates from 16 production sites around the world and employs 1,700 people.

Gilles Andrier, chief executive of Givaudan, says: “Givaudan is the global leader in the space of natural flavours and Naturex further complements our capabilities with its strong portfolio of plant extracts and natural ingredients across the food and beverage, nutrition and health and personal care sectors.”

Müller to Drive Down Plastic Use by Acquiring Milk Packaging Capabilities Müller, Britain’s biggest producer of fresh milk, butter, cream, yogurt and desserts, has confirmed its intention to acquire the capability to manufacture its

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own fresh milk packaging in the UK. The multi million pound move will give the business the means to further accelerate reduction in the use of plastic and increase the use of recycled plastic in its bottles to its target of 50% by 2020. Plastic bottles used for Müller’s branded and private label fresh milk products are already 100% recyclable.

Müller will also use its newly acquired assets to pursue innovative new packaging solutions, working in partnership with its customers.

Acquisitions of bottle manufacturing plants owned by

evolving to meet rapidly changing customer and consumer needs.”

ABP Acquires Third Anaerobic Digestion Facility

ABP Food Group’s Renewables Division, Olleco, has announced the acquisition of an anaerobic digestion (AD) facility at Westcott Park, Bucking-hamshire in England from Renewi plc, a leading waste-to-product business, for an undisclosed sum. The facility has capacity to process 96,000 tonnes of food waste each year and produce up to 3.2 Mw of green electricity and 4.8Mw of renewable heat enough to power 6,000 homes. Westcott Park will be Olleco’s third AD facility in addition to its sites at Aylesbury and Liverpool.

Olleco collects waste food and cooking oil Andrew McInnes, managing director of Müller from the retail and food service sectors and Milk & Ingredients converts this waste into Nampak adjacent to Müller’s bio diesel, bio gas and bio ferdairies at Bellshill and tiliser. The company employs Manchester have already con- over 600 people in 15 locacluded and Müller is in tions across the UK. advanced negotiations to purABP Food Group is recogchase Nampak’s bottle manu- nised as an industry leader facturing assets adjacent to its when it comes to sustainable Foston and Severnside dairies practices and environmental with a view to completion of initiatives. In 2015 the comthese transactions in October pany opened the world’s first 2018 and Autumn 2019 certified carbon neutral abatrespectively, when current toir in Ellesmere where waste supply contracts expire. material from the food proAndrew McInnes, managing cessing operation is used in director of Müller Milk & conjunction with used cookIngredients, says: “We are ing oil to provide the energy clear about the need to drive requirements on site. Last down the use of plastic and year, ABP became the first have worked with our suppli- food company to achieve ers to remove 10,000 tonnes quadruple accreditation from from our milk bottles since The Carbon Trust in recogni2016. We are also actively tion to the work it was doing increasing the use of recycled in reducing its environmental plastic and seeking significant- impact across the supply ly higher levels of sustainable chain. packaging innovation.

With these acquisitions we are changing our operating model to gain greater control and agility to ensure that our packaging is fit-for-purpose, recyclable and

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COVER STORY

Scotch Whisky Returns to Export Growth as Irish Whiskey ‘Renaissance’ Continues While Scotch whisky exports have now returned to growth, reaching record sales of £4.36 billion in 2017, the Irish whiskey sector still remains the fastest growing spirits category in the world. old in around 200 markets worldwide, Scotch whisky exports increased by 8.9% in value last year, helped by the weakness of Sterling, and by 1.6% in volume – to the equivalent of 1.23 billion bottles. Exports of single malt Scotch whisky remained buoyant, growing by 14.2% in 2017 to £1.17 billion. The previous record for export sales of Scotch whisky was £4.27 billion, achieved in 2012.

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Irish Whiskey Renaissance Although still much smaller in scale than its Scottish counterpart, the Irish whiskey industry is enjoying a ‘renaissance’ as exports to 135 international markets continue to grow at a double-digit rate.

There are 18 distilleries currently in production and a further 18 in planning in Ireland, compared to 118 operational distilleries in Scotland. Nearly 120 million bottles (10 million cases) of Irish whisky were sold in 2017, worth over Eur600 million in exports from Ireland - up 20% from 2016.

“While the Scotch whisky industry sells ten times more bottles than the Irish, the Irish whiskey industry is growing at a much greater speed,” points out William Lavelle, head of the Irish Whiskey Association. “The export value of Irish whiskey grew by 20 per cent in 2017, compared with an 8.9 per cent growth for Scotch. In terms of the overall number of bottles sold, we can see from the comparison that sales of Irish whiskey grew at a doubledigit rate last year, while Scotch grew by 1.6 per cent. Irish whiskey is the fastest growing spirit category in the world and we are targeting more growth in more markets.”

Investing in Future Growth Scotch whisky and Irish whiskey distillers are continuing to invest heavily in new capacity to support anticipated future growth.

Over Eur1 billion will have been invested in Irish whiskey distillery projects between 2010 and 2025. Overall, production of Irish whiskey is forecast to double between 2015 and 2020 and double again in the following decade.

Jean-Christophe Coutures, currently chairman and chief executive of Irish Distillers, who becomes chairman and chief executive of Chivas Brothers in July. Chivas Brothers is the Scotch whisky and premium gin business of Pernod Ricard.

The EU remains the top destination for Scotch whisky exports, accounting for 31% of the total in 2017, followed by North America (26%) and Asia/Oceania (22%). Scotch whisky currently accounts for over 20% of all UK food and drink exports.

Karen Betts, chief executive of the Scotch Whisky Association, comments: “Already a strong export, loved for its sophistication, diversity and provenance, it’s great to see Scotch continuing to grow in established and new markets. Scotch whisky is not just a core part of Scotland’s national identity and heritage, it is also a fundamental part of our export economy. With more than 40,000 jobs supported by the Scotch whisky industry across the UK, 7,000 of which are in rural areas in Scotland, it is crucial that we continue to support both the new wave of whisky entrepreneurs and established distillers who are taking Scotch to the world.”

Sold in around 200 markets worldwide, Scotch whisky exports increased by 8.9% in value last year to reach record sales of £4.36 billion.

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Karen Betts, chief executive of the Scotch Whisky Association.

“Once complete, this will be a major driver of our business for the future and the result will be a world-class facility that will support long-term growth,” says Laurent Lacassagne, who has been chief executive of Chivas Brothers for the last five years but will step down in July. “It’s an exciting time for our business and the industry – Scotch whisky is firmly back to growth and conditions remain dynamic, while the gin category continues to boom.”

Edrington is investing £100 million in a distillery and visitor centre for The Macallan whisky brand. The new facility is due to be fully operational by the Summer (see ‘Edrington’s £100 Million New Distillery Investment’ in this issue).

Another well established Scotch whisky producer, The Glenmorangie Company, has just announced a multi-million pound investment in a new stillhouse at its Highland Distillery and a new stillhouse at its Ardbeg Distillery. Meanwhile, Mossburn Distillers is investing £40 million in two distilleries along with warehousing and bottling facilities at Jedburgh in the Scottish Borders.

A number of smaller distillery projects are also underway such as a planned £12 million distillery and visitor centre on the Ardgowan Estate near Inverkip, 30 miles west of Glasgow in Scotland. The Ardgowan Distillery Company plans to build a world-class lowland malt whisky distillery and visitor attraction on the estate which is due to be operational in 2019.

Elsewhere, Distell of South Africa is investing £11 million to renovate the Bunnahabhain Distillery in Islay, while £12 million

In Scotland, Diageo, the world’s largest Scotch whisky producer, has embarked on a £1 billion development programme designed to expand overall production capacity at its sites by 30% to 40%. Diageo is currently investing £35 million to revive two Scotch distilleries - Port Ellen and Brora, which were both closed in 1983. Scotch whisky is central to Diageo’s spirits and beer business, generating about 25% of group sales and a third of profits.

Chivas Brothers, the Scotch whisky and premium gin business of Pernod Ricard and the second largest Scotch whisky producer in the world behind Diageo, is investing £40 million in a new, integrated and state-ofthe-art plant at its Kilmalid site in Dumbarton. The project, which includes a new bottling hall and offices, is due to be completed by the end of 2019 Diageo is currently investing £35 million to revive two Scotch distilleries - Port Ellen and Brora, which were both closed in 1983.

is being spent on the Rosebank Distillery in Falkirk by Ian Macleod Distillers.

A new £10.7 million urban whisky distillery and bottling complex is to be built on the banks of the River Clyde in the heart of Glasgow by one of the country’s fastest growing Scotch whisky firms, Douglas Laing & Co.

Pictured at a recent Irish Whiskey Association mentoring event are (from left to right): David Stapleton of Connacht Whiskey Distillery; Ger Buckley, head cooper at Irish Distillers; Kevin O’Gorman, head of maturation at Irish Distillers; and William Lavelle, head of the Irish Whiskey Association. The IWA mentoring programme involves established global Irish whiskey players such as Irish Distillers and Bushmills offering support to newer market entrants.

Irish Whiskey Projects Since 2014, the number of operational Irish whiskey distilleries has grown from four Cooley Distillery, Kilbeggan Distillery, Midleton Distillery and Old Bushmills Distillery - to 18. Recently completed projects include: the Eur35 million Tullamore DEW Distilleryin County Offaly by William Grant & Sons; Eur35 million investment in the Great Northern Distillery, Dundalk, County Louth; the Eur25 million Walsh Whiskey Distillery in County

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countries with sales in excess of 32,000 cases in the 12 months to March 2017.

Quintessential Brands acquired the Dublin Liberties Distillery in 2016 and has since developed designs for a unique distillery and visitors’ experience.

“The growth in Irish whiskey has been phenomenal in recent years and shows no sign of abating,” remarks Darryl McNally, general manager and master distiller of Quintessential Brands Irish Whiskey.

“Consumers want authenticity and provenance, as well as amazing product. The Dublin Liberties and The Dubliner Irish Whiskey consistently rank among the finest whiskeys in the world due to the care in their distilling and blending as well as the heritage they get from one of Dublin’s most famous – and infamous – areas.”

Stock Spirits Group, a leading owner and Darryl McNally, general manager and master distiller of Quintessential Brands Irish Whiskey. producer of premium branded spirits and liqueurs that are principally sold in Central Carlow; Eur44 million by Slane Castle Irish Whiskey in County and Eastern Europe, recently invested Eur18.3 million in Meath; Eur10 million in the Connacht Whiskey Distillery, Quintessential Brands Irish Whiskey for a 25% equity interest.

County Mayo; and Eur10 million by Teeling Whiskey Company In Northern Ireland, a new £12 million whiskey distillery and in Dublin. visitor centre is planned for Derry by local company Niche Other projects are underway or nearing completion. For example, Diageo has re-entered the Irish whiskey category with plans to establish a new Eur25 million whiskey distillery in the old Power Station building at its St James’s Gate brewery site in Dublin. Diageo intends to build on the heritage of George Roe, the once world-famous whiskey maker who helped build the golden era of Irish whiskey in the 19th century. His distillery, George Roe and Co extended over 17 acres on Thomas Street in Dublin and was once Ireland’s largest distillery.

Also in Dublin, the Eur20 million Pearse Lyons Distillery was recently opened and the Dublin Liberties Distillery is due to be completed shortly following investment of Eur18 million. The Dublin Liberties Distillery is being developed by Quintessential Brands Irish Whiskey, owner of The Dublin Liberties and The Dubliner Irish Whiskey brands, which are sold in more than 30

Diageo, the world’s largest Scotch whisky producer, has re-entered the Irish whiskey category with plans to establish a new Eur25 million whiskey distillery in Dublin. Diageo intends to build on the heritage of George Roe, the once Laurent Lacassagne, who has been chief executive of Chivas Brothers for the

world-famous whiskey maker who helped build the golden era of Irish whiskey

last five years, will step down in July.

in the 19th century.

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Pearse and Deirdre Lyons, founders of Pearse Lyons Distillery, Dublin’s new experience, located in the heart of The Liberties.

Drinks, while Jose Cuervo (Mexico) has embarked on a £30 million expansion of the Old Bushmills Distillery in County Antrim. €250 Million Investment Programme The world’s largest Irish whiskey producer, Irish Distillers has invested over Eur250 million since 2012 to double its production and bottling capacity to meet growing global demand and has just

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spent Eur11 million to redevelop the Jameson Distillery in Dublin to become a top visitor attraction.

Headed by its flagship Jameson brand, Irish Distillers, which is part of Pernod Ricard, has been the main driving force behind the global ‘renaissance’ of Irish whiskey. Jameson is the world’s fastest-growing Irish whiskey, experiencing 28 years of consecutive growth and is currently in double or triple digit growth in 80 markets across the world. Jameson achieved sales of 6.5 million cases in 2017.

“At Irish Distillers we are incredibly proud to lead the sustained growth of an iconic Irish product that is truly loved the world over,” says Jean-Christophe Coutures, currently chairman and chief executive of Irish Distillers, who becomes chairman and chief executive of Chivas Brothers in July.

“Consumers, particularly millennials, are showing signs of appreciating higher end boutique Irish whiskey and super premium products and at Irish Distillers we are well placed to meet this trend. Growth of our prestige range led by Redbreast and Midleton Very Rare, reflects the growing consumer appetite for premium Irish whiskeys, and the resurgence of the time-honoured single pot still Irish whiskey.”

Growth in Tourism Tourism is a growing additional source of revenue for both industries with Scotch distillery visitor centres attracting 1.7 million

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ed two new distillery visitor centres which opened during the year at Slane Distillery in County Meath and Pearse Lyons Distillery in Dublin. A new distillery visitor centre has also just opened at Rademon Estate Distillery in County Down. Indeed, Irish Whiskey Association members plan to open at least ten more visitor centres in the coming years.

“Whiskey tourism is delivering tourists, jobs and investment to local economies right across Ireland, from Dublin’s Liberties to rural communities,” says William Lavelle. “Increasingly, the promotion of a whiskey brand goes hand-inhand with the promotion of the home distillery. For this reason, the promotion and advertising of Irish whiskey distillery Pictured ahead of the recent Six Nations rugby match between Ireland and Scotland were: Karen Betts, chief executive of the Scotch Whisky Association; Aoife Clarke, chair of the Irish Spirts Association; Patricia Callan, director of Alcohol Beverage Federation of Ireland; and William Lavelle, head of the Irish Whiskey Association.

visitors annually and Irish ones 814,000.

Furthermore, visitor centres are also a valuable marketing and brand building tool.

The number of tourists visiting Diageo’s 12 distillery visitor centres across Scotland reached a record high of 440,260 in 2017, representing a 15.2% increase on the previous year. Indeed, over the last five years, the attractions have recorded a remarkable 96.3% growth in visitor numbers, fuelled by international visitors to Scotland.

Ewan Andrew, head of International Supply at Diageo, says: “As the country’s lead export, Scotch whisky is one of the biggest magnets for tourism and we’re continuing to grow visitor numbers from around the world. We’re also continually working to ensure those visitors have the best experience at our distilleries. They always enjoy meeting the makers, then tasting and learning more about our outstanding single malts and blended Scotch whiskies. We look forward to welcoming even more visitors to our distilleries throughout the year.”

Irish Whiskey Tourism Strategy Visitors to Irish whiskey distilleries are also growing rapidly and increased by 11% in 2017 to 814,000 people, according to the Irish Whiskey Association.

Since 2015, when the Irish Whiskey Association published the Irish Whiskey Tourism Strategy to support this growth, visitor numbers have grown by 25%. The Irish Whiskey Tourism Strategy has set a target of 1.9 million visitors by 2025.

In 2017 Irish Whiskey Association members operated 12 distillery visitor centres on the island of Ireland. This includ-

growing number of distillers seek to launch distinctive products, suppliers of equipment and services are coming under increasing pressure to develop new technologies. For example, Scottish distillery designer, Allen Associates, has been working with distillers to develop 3D models of their sites and proposed projects, and is now also using virtual reality (VR) technology.

Allen Associates has developed a system that takes layout designs from the drawing to a 3D walk though to provide designers and clients a true understanding of how the distillery will look and operate. “We have a number of clients and architects visiting the office to look at past designs of similar distilleries to give them an understanding of what is involved,” explains Martin Smith, process engineering director at Allen Associates. “When the design of their distillery develops they can then do the VR Nearly 120 million bottles (10 million cases) of Irish whisky were sold in 2017, worth over Eur600 million in tour to ensure the layout is exactly as they want.” exports from Ireland - up 20% from 2016.

To increase throughput and efficiency, visitor centres is often inseparable from the promotion and many distillers are moving further into automation. “They are advertising of the Irish whiskey brands produced there.” continuing to build on automated bottling and packaging lines by increasing automated warehouse capacity,” points out Jim Brexit Hardisty, managing director of Goplasticpallets.co.uk, the UK’s Of course, both the Scotch whisky and Irish whiskey industries leading independent supplier of plastic pallets, pallet boxes and will be impacted by Brexit. Karen Betts comments: “It’s very small containers. “With such major investment in automation, important to the industry that our global markets remain robust companies need to be sure they are working with tools and and resilient as the UK navigates Brexit and establishes new machinery that will optimise their efficiency and provide value trading relationships around the world. We have undoubtedly for the investment. Recycled plastic pallets have found a really benefited from recent falls in the value of the pound, as have good fit here - they are strong, hygienic and durable and they other exporters. But this short-term boost will not distract the work seamlessly with automated guided vehicles, conveyors, industry from working hard to secure the conditions for long- turntables, and pallet-to-pallet transfer stations.” term growth.”

With the value of each pallet load carrying approximately She elaborates: “With over 30% of our trade with EU, it is £60,000 of spirits, it is vital that the system is trustworthy. Jim vital that the UK Government secures transition that allows Hardisty adds: “In terms of sustainability, the recyclability of frictionless trade to continue with European markets and with plastic pallets and the fact that they will be as strong and those countries with which the EU has free trade agreements. hygienic as the first time around is a big draw for companies Longer term, we are urging the UK government to secure as placing an emphasis on the environmental impact of their pracsmooth trade conditions as possible with Europe alongside pur- tices.” J suing ambitious free trade deals with key markets around the world, tackling barriers to trade, and bolstering the legal protection of Scotch Whisky.”

The Irish Whiskey Association is similarly anxious about the implications of Brexit.

William Lavelle remarks: “The Irish spirits and whiskey industry has concerns in relation to preserving cross-border supply chains, safeguarding the EU-backed regulations (Geographic Indicators) that protect Irish whiskey and Irish cream liqueur and ensuring continued smooth movement of excisable spirits in duty suspension between Ireland and the UK.” Advanced Technology While the main thrust of recent investment in the Scottish whisky and Irish whiskey sectors has been on adding capacity in production, warehousing and bottling, the focus has also been on improving both efficiency and sustainability but without impacting on product quality. Indeed, as a

The Glenmorangie Company has just announced a multi-million pound investment in a new stillhouse at its Highland Distillery and a new stillhouse at its Ardbeg Distillery.

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I DISTILLING

Edrington’s £100 Million New Distillery Investment Independent Scottish distiller Edrington is expected to have its new £100 million distillery and visitor centre in Speyside for its prestigious Scotch single malt whisky brand, The Macallan, fully operational later this year. n addition to The Macallan, Edrington’s other core brands are Highland Park and The Glenrothes single malt whiskies, The Famous Grouse and Cutty Sark blended whiskies, Brugal rum and Snow Leopard vodka. The group owns several malt whisky distilleries, including The Macallan, Highland Park, Glenrothes and Glenturret. Edrington also owns 50% of The North British Distillery.

The Brugal business in the Dom-inican Republic was acquired in 2008 and Snow Leopard was purchased in 2013 as part of Edrington’s strategy of diversifying its portfolio beyond Scotch whisky and focusing on developing super premium brands. Edrington also purchased The Glenrothes Speyside single malt Scotch whisky brand for an undisclosed Ian Curle, chief executive of Edrington. sum last year.

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Edrington is continuing to focus on the fast growing premium and superpremium sectors of the global spirits market in line with its Edrington 2020 development strategy. This prioritises further enhancing The Macallan brand, accelerating the growth of Highland Park, and further developing the group’s super premium capability, while optimising its regional power brands.

million, an increase of 32% versus 2016, reflecting core contribution growth and the impact of the fall in the value of Sterling.

“Since its introduction in 2015 our strategy – Perfect The Macallan, Accelerate Highland Park, develop Super-Premium, Optimise Regional Power Brands – has gained momentum and positively impacted results,” says Ian Curle, chief executive of Edrington. “Higher levels of investment in brand marketing, increased innovation, and greater focus on consumers have led to an encouraging performance.”

“Despite short term uncertainty we are confident about the medium and long term prospects for the business,” he adds. “With its premium brand portfolio, proven strategy, and management capability, Edrington has established the necessary momentum to deliver further growth.”

Development Strategy Edrington is continuing to focus on the fast growing premium and super-premium sectors of the global spirits market in line with its Edrington 2020 development strategy. This prioritises further enhancing The Macallan brand, accelerating the growth of Highland Park, and further developing the group’s super premium capability, while optimising its regional power brands.

In its last reported financial results for the year ended 31 March 2017, Edrington delivered core revenue (total revenue excluding the impact of currency and trade sales) of £668.1 million – up 6% on 2016. The core contribution of £204.3 million was also 6% higher than the prior year as Edrington’s portfolio of premium brands responded to an 18% increase in brand investment to £110.7 million. Profit Incorporating a rolling roofscape, the new facility will complement the natural for the financial year was £91.0 beauty of The Macallan Estate, which overlooks the River Spey.

FOOD & DRINK BUSINESS EUROPE, MARCH/APRIL 2018

£100 Million Investment The new distillery is designed to ensure the on-going quality control of the production of The Macallan and to further consolidate the brand’s position as one of the world’s leading luxury spirits. Over time the distillery will deliver additional capacity to meet the growing demand from existing and new international markets.

Incorporating a rolling roofscape, the new facility will complement the natural beauty of The Macallan Estate, which overlooks the River Spey. Robertson is the preferred contractor for the 17

Edrington has just launched a new design across The Macallan range of single malt whiskies.

project, and Forsyths of Rothes is supplying the distillation equipment.

According to Scott McCroskie, managing director for The Macallan: “The new distillery is unique - I don’t think there’s anything like it; in fact, I don’t think there will be anything like it again. It’s something truly special.”

With The Macallan brand close to breaking the one million case sales barrier, Scott McCroskie says: “The Macallan has steady growth – markets grow at different levels at different times – but it’s a good, strong, solid growth dynamic behind the brand.”

Redesign of The Macallan Edrington has just launched a new design across The Macallan

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range of single malt whiskies, while also discontinuing its 1824 Series, which was launched in 2012. There are also a number of other changes to highlight the ‘cask’ focus of the portfolio.

The redesign is intended to showcase The Macallan as ‘a whisky for every occasion’. Inspired by The Macallan Rare Cask and Rare Cask Black packaging, the new bottle design features broad shoulders and a chevron cut at the neck.

Glen Gribbon, marketing director at The Macallan, remarks: “With this bold new design we want to do justice to the extraordinary whisky inside the bottle which, of course, is what we at The Macallan and every whisky fan worldwide really cares about. We think the new bottle looks as good in a world-class bar as it does on a table at home being shared with friends. In addition, we have invested thousands in developing anti-refill and anti-counterfeit technology to help protect consumers.”

The Macallan mar- Scott McCroskie, managing director for The keting head contin- Macallan. ues: “By consolidating our core range to Sherry Oak, Double Cask and Triple Cask Matured we’re able to highlight the variety of whisky coming out of our distillery and also to encourage new and existing fans to try The Macallan across a variety of occasions.” J

FOOD & DRINK BUSINESS EUROPE, MARCH/APRIL 2018

I DISTILLING

New Technology Gives Distillery Owners a Virtual Experience he opening of the first legal distillery on the island of Raasay was the latest in a series of projects that underline the technoT logical advancements being made in the distilled spirits sector in the UK and Ireland. As more and more distillers look to launch their own unique spirit, so the pressure is on for those businesses supporting the industry to develop new technologies that will improve efficiencies and cut costs, without reducing quality.

Stirling-based distillery designer, Allen Associates, understands this only too well and over the past few years has worked with distillers to develop 3D models of their sites and proposed projects.

The Tullamore Dew Distillery in Ireland benefited from the company’s expertise with the extensive use of 3D modelling helping to create an efficient distillery that also retained a traditional malt distillery feel and character.

Martin Smith, Allen Associates Recently this has taken another Process Engineering Director. step forward through the introduction of virtual reality (VR). At the 2017 World Distilled Spirits Conference, the Allen Associates team unveiled a system that takes layout designs from the drawing to a 3D walk though, giving designers and clients a true understanding of how the distillery will look and improving process plant layout.

“The reaction has been extremely positive,” says Martin Smith, Allen Associates Process Engineering Director. “We have a number of clients and architects visiting the office to look at past designs of similar distilleries to give them an understanding of what is involved. When the design of their distillery develops they can then do the VR tour to ensure the layout is exactly as they want.”

Martin continues: “The VR system was first used during our work with Raasay, primarily due to the remote nature of the site.

During detailed design work the pipework layout became challenging. However, this was overcome by working closely with Garry Fraser at LH stainless and preparing a virtual reality 3D model of the distillery.” J

VR was used by Allen Associates during their work with Raasay.

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I SCOTCH WHISKY

A Wee Dram Goes Further Than You Think Thanks to Goplasticpallets.com t’s one of the world’s favourite food Iwhisky exports and it’s important to keep the flowing at all times. As the US writer, Mark Twain said: “Too much of anything is bad, but too much good whisky is barely enough.”

That’s why The Edrington Group, the international premium spirits company, approached Goplasticpallets.com when it needed help with its logistics in 2012 – and the solution is still working five years later.

The success of Edrington’s installation is further proof why people should: Leave the

wood. Go plastic - which is the theme of Goplasticpallets.com’s new marketing campaign.

Logistics Parner As Chris Hendry, Procurement Manager at Edrington, explains: “We can package and ship approximately 5 million cases of whisky a year at this site that’s why it’s essential we work with the very best logistics partners. The pallets and solution we were supplied by Goplasticpallets have been fantastic and offer so many improvements over wood, durability being just one of the benefits. We’re over the moon with their performance.”

Jim Hardisty, Managing Director of Goplasticpallets.com, adds: “We offer in excess of 155 different pallets and pallet boxes – the country’s largest selection, with many items available direct from stock – and we work in all sectors from manufacturing to food and drink production. We’re not at all surprised that the solution we provided to Edrington is still working and still proving it’s worth some five years later, and we’re sure the solution will still be performing to its utmost in another five years’ time.”

Durable and Cost-effective Solution Goplasticpallets.com recommended a switch from wooden to plastic pallets for a durable and cost-effective solution capable of withstanding the tough manufacturing environment, which involves a high level of automation – essential since each pallet can carry £60,000 worth of spirits.

Edrington ordered 1,400 of the company’s APB 1210 Pool Perforated 5R pallets in black. It also requested the removal of the lips to prevent damaging the cases and inner gift cartons, which often overhang the edge of the pallets. Anti-slip strips were added as a necessity to protect the fragile cargo, from the bottling line to the container.

Jim

Hardisty,

Managing

Director

of

Goplasticpallets.com.

Edrington also requested that Goplasticpallets.com sequentially number each of the 1,400 pallets for internal auditing purposes and brand ‘TEG’ (The Edrington Group) for easy in-house identification.

For further information contact Goplasticpallets.com on 01323 744057 or

by Emailing sales@goplasticpallets.com.

Alternatively, visit www.goplasticpallets .com to explore the UK’s largest range of plastic pallets and pallet boxes. J

APB 1210 Pool Perforated 5R pallets in black.

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I BEVERAGES

The Dynafill Beer Filler – Fills and Crowns in a Single Unit everage bottlers’ requirements are B extremely exacting: achieving progressively higher outputs while consuming less CO2 and nonetheless upgrading the filling quality – and all this in a sturdy system that’s ideally designed for cleaning. For beer filling, these are precisely the criteria Krones has satisfied with the new Dynafill.

And this product has some persuasive pluses that compel respect: the machine halves the time required, saves distance, and replaces what used to be two machine

units with a single one. How is this accomplished? The Dynafill performs filling and crowning in a single functional unit – and needs only five seconds for it. It can safely be claimed that the Dynafill concept is revolutionising beer bottling.

The filling process in detail: * Evacuation and filling - The filling valve moves into the pressure chamber; the glass bottle is pressed against it. The container is flushed with CO2. The filling process itself then takes only around half a second, and ends when the bowl pressure has been reached inside the bottle. * Crowning and snifting - The closure is inserted and the chamber sealed while the flushing operation is still ongoing. In parallel to the filling operation, the pressure chamber is then evacuated, and pressurised with CO2. Once the filling valve has completed its task, it moves back and makes way for the crowner head, which places a crown on the bottle.

The bottle descends, and leaves the filling and crowning unit. J

All Advantages at a Glance • Reduced footprint: Thanks to the 2-in-1 principle, the Dynafill needs significantly less space than a comparable filler-crowner combination. Moreover, since the filler does not have to be emptied in the event of a malfunction in the bottling line, the buffering section to the labeller can be downsized and the labeller can be directly block-synchronised with the filler.

• Higher outputs: The Dynafill will enable higher overall line outputs to be achieved than with conventional systems.

• Enhanced filling quality: The enclosed hygienic filling and crowning zone ensures optimal product purity, since no return gas has to be sent back to the product bowl.

Moreover, no fobber is required, and no product is lost during filling.

• Reduced CO2 consumption: The CO2 consumption is 20 per cent lower than with conventional systems.

• Stability in the filling process: The Dynafill can handle beverages in both coldfill and warmfill (temperature up to 30 °C) modes – the process duration is less than five seconds and always remains stable.

• Ideal interior cleaning: The Dynafill is a closed system. The filling valve and the crowning unit are integrated into the CIP circuit.

• Easier accessibility: The individual components involved, like the filling valve, the media piping and the drive of the crowning head can be individually removed.

Tetra Pak Scoops Top Award For Manufacturing Excellence etra Pak’s packaging material factory in Izmir, Turkey, has T received the world’s top award for manufacturing excellence. In doing so, it becomes only the 22nd factory worldwide to win the prestigious award in more than 40 years.

Appraised by the Japan Institute of Plant Maintenance, the World Class Total Production Maintenance (TPM) Award is presented to facilities that have achieved outstanding levels of production quality, reliability, efficiency and environmental performance.

“The TPM Award is tremendous recognition for the hard work, dedication and focus of our Izmir team,” says Eric Baudier, Executive Vice President, Supply Chain Operations at Tetra Pak. “The commitment they have shown to ensuring our customers receive products of outstanding quality, while maintaining the highest standards of operational performance and sustainability, is truly reflected in this achievement.”

“Izmir is a strategic location for our global supply chain network.

In the last five years alone, the company has invested more than 60 million euros in this plant, and will continue to do so, especially in digitalisation and new technologies,” Eric Baudier adds.

With a capacity of more than 10 billion packs, the Tetra Pak Izmir factory produces 20 different packaging products. Last year,

of the 8.2 billion packages produced, 50% were exported to customers in 36 countries in Europe, Asia, Africa, and the Americas, with a delivery lead time of less than one week.

This is the second time in two years that a Tetra Pak facility has received this award, following the 2016 success of its Gornji Milanovac factory in Serbia. J

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I BAKERY

iba 2018 – Stronghold of the International Baking Industry Iba, the world’s leading trade fair for bakery, confectionery and snacks, will take place at Fairground Munich from 15-20 September 2018. s a premier platform, it offers an unparalleled market overview in twelve halls with all the latest innovations and products of the industry. Virtual bakery tours, a central topic for the to-go market and a speakers’ corner are exciting innovations that visitors can look forward to.

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efficiency, automation, hygiene, digitisation at the point of sale, and in production, shop fitting, packaging and logistics.”

New Speaker's Corner in Hall B5 The baking industry is facing big challenges. In addition to the iba.FORUM in Hall B3, the new speakers’ corner in Hall B5 offers comprehensive coverage. There, visitors can exchange ideas with leading experts on interesting topics from science to applying it in practice and get a perspective on upcoming trends.

“The interest shown by national and international companies is huge. Apart from a few remaining spaces, iba is already fully booked,” says Dieter Dohr, CEO and President of GHM Gesellschaft für Handwerksmessen. More than 1100 exhibitors from over 45 countries will cover the entire spectrum of baking goods with their range.

“As the leading trade fair, iba has an eye on all the trends in the industry worldwide, as well as the relevant requirements for bakers and confectioners, restaurateurs and industry decision-makers of the food retailing sector,” explains Dohr. “At iba 2018, innovations and concepts will play a central role for all sized companies in the areas of manufacturing processes, the out-of-house market, energy

New Visitor Service – The Digital iba Marketplace Iba also offers its visitors a new digital service. Through the online marketplace, visitors can prepare themselves better for their specific needs before the fair and so gain a better overview and orientation

on site. Thanks to the new search option for ‘solution approaches’, you can quickly find, for example, innovative snack solutions, digitisation, energy efficiency or raw materials that will be exhibited at iba. Additionally, visitors have the opportunity to contact the exhibitors directly and arrange appointments with them. Further information is available at www.marktplatz.iba.de/en. ‘iba.TO GO!’ - Snack and Beverage Concepts in a Central Area Also new is the topic area ‘iba.TO GO!’ in Hall B3. For the first 24

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time, iba is combining innovations and solutions for snack and beverage concepts for baking traders at a central contact point.

There, the entire process chain of snacks is presented - from ingredients and preparation, through to sustainable packaging solutions to logistics and shop design, rounded off with many workshops and displays. The trend topic coffee is also discussed in detail by experts, starting with the coffee bean, roasting and grinding, to machines and serving coffee in china or to-go cups with a deposit system. ‘iba.OPERATE!’ - The Entire Packaging Market in One Hall With ‘iba.OPERATE!’, packaging solutions and processes are shown in Hall B1. “Medium-sized companies, large bakeries, manufacturers of dough and the food retail industry, iba offers a market overview in this area, which has never been seen before at this fair,” says Claudia Weidner, project manager of iba. Intelligent and environmentally-friendly packaging, food safety and process optimisation solutions will be presented, of course, live in action.

Top Bakers in One Place At iba, a multimedia experience show in Hall B3 will premiere.

From Munich, visitors can have a look at the top bakeries on a national and international level. With the help of virtual reality glasses and 360-degree videos, you will be able to see right into renowned master bakeries from Germany, Greece, Iceland, Austria, Japan or the USA directly at the fair. Here, trade visitors experience first-hand what makes their colleagues across the border successful.

The experiential programme in Hall B3 will be complemented by the appearance of renowned industry stars in live competitions at the ‘iba.FORUM’. Highlights include the world-renowned iba-

UIBC-CUP, an international championship in which bakers from twelve countries compete against each other. In 2018, for the first time, the best young confectioners in the world will compete in the UIBC Junior World Championships in Munich.

Best For Last For visitors and exhibitors to be able to exchange views in a relaxed atmosphere after the fair, the iba Oktoberfest tent will also be on the exhibition grounds. This year, Wiesn-Wirt Able will take care of the guests and thus ensures a relaxing end with the original Bavarian Oktoberfest atmosphere - of course with a brass band and traditional specialties. Further information about iba visit www.iba.de/en. J

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I MARKET FOCUS

Healthy Growth For Dried Fruit and Nuts Europe is the largest market for dried fruit and nuts in the world and consumption levels are continuing to rise, fuelled by rising concerns about healthy eating.

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lthough responsible for only 10% of global production of tree nuts, Europe is the world’s largest consumer, accounting for about 25% of total consumption.

Almonds are the most the most popular nut in Europe, followed by walnuts and hazelnuts.

Europe accounts for a similar proportion of the total global consumption of dried fruit, even though it produces only about 8% of world output. Prunes and dried grapes are the most consumed dried fruits in Europe.

Largest Market “Europe is the largest market for both edible nuts and dried fruit in the world and it depends to a large extent on imports.

The market is showing healthy growth, which is likely to continue in the medium and long term, especially in tree nuts. For growers, investors and exporters, these products therefore offer big opportunities, provided of course that they can meet the quality and safety requirements,” points out Freek Jan Koekoek, sector expert food ingredients at CBI, the Centre for the Promotion of Imports from developing countries. Established in 1971, CBI contributes to sustainable and inclusive economic development in developing countries through the expansion of exports from these countries to Europe.

Currently worth over Eur11 billion, imports of dry fruit and nuts across Europe are continuing to rise in both value and volume.

Indeed, due to supply constraints value sales are outstripping volume. Since 2012, import volumes have grown annually by about 5% to over 2.7 million tonnes but value sales have expanded by 10% annually. Large importing and consuming markets such as the Netherlands, Germany, France and the UK offer opportunities for developing country exporters.

The UK is the largest importer of edible nuts in Europe, while Germany is the largest importer of dried fruit. However, Central and Eastern European countries are expected to increase imports of

edible nuts and dried fruit at a faster rate than their counterparts in Western Europe.

Supplying mainly almonds, walnuts and dried cranberries, the United States and Turkey (chiefly hazelnuts, dried grapes and dried apricots) account for about 40% of all European imports by value.

Shelled almonds have the highest value of imports with a 23% share, followed by shelled hazelnuts (12%), shelled cashew nuts (12%) and shelled groundnuts (8%) in 2016. The highest annual growth of import value in the last five years was in chestnuts (20%), Brazil nuts (19%), almonds (18%), and cashew nuts (17%). There is a growing demand for Brazil nuts, macadamia nuts and dried prunes as well as for dried superfruit, such as dried berries (eg cranberry, aronia, mulberry), dried physalis and powdered dried superfruit.

EU Exports The European Union is also a producer and exporter of edible nuts and dried fruit. The region produces more edible nuts, chiefly hazelnuts and almonds, than dried fruit. Dried figs and prunes are the most produced dried fruit in Europe.

With regard to primary production, including growing, harvesting and drying, the largest European producers are Spain (led by almonds), Italy (hazelnuts), France (prunes) and Greece (dried grapes). Spain, the Netherlands, the UK and Italy are major producers of processed edible nuts and dried fruits.

Processing includes mixing, roasting, coating and repacking of imported products.

The confectionery, bakery, snacks and desserts industries in Europe are major users of imported nuts and dried fruits for further processing. Major companies involved in this sector include: Germany-based Intersnack Group, CG Hacking & Sons of the UK, V Besana of Italy, Borges of Spain and Bosch Boden Spies of Germany.

The vast majority of European exports of dried fruit and nuts involve intra-trade within Europe and chiefly consist of the reexport of imported products. For example, Spain, Europe’s largest producer of almonds, re-exports a significant amount of almonds imported from the US. J

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I MEAT & POULTRY

Consolidation Makes European Meat Industry Leaner as Brexit Looms The European meat and poultry industry is steadily becoming more consolidated and global in nature as the major processors seek to expand and diversify through acquisitions. he biggest deal of this type in the past year was the $1.3 billion acquisition of Moy Park, a leading poultry and prepared foods processor in the UK and Continental Europe, by US-based Pilgrim’s Pride Corporation.

Operating 13 processing and manufactur-

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Bill Lovette, chief executive of Pilgrim’s Pride Corporation.

ing units in Northern Ireland, the UK, France, the Netherlands and Ireland, Moy Park processes 5.7 million birds per week, in addition to producing around 200,000 tons of prepared foods per year.

According to Bill Lovette, chief executive of Pilgrim’s Pride Corporation: “Moy Park represents a logical next step in the evolution of our geographical and brands footprint. The acquisition gives us access to the attractive UK and European markets, which advances our strategy of diversifying our portfolio to be more global while reducing volatility across our businesses.”

Janet McCollum, chief executive of Moy Park, comments: “Pilgrim’s is one of the leading chicken producers in the world with a proven track record and we see great opportunities for Moy Park as part of this successful business. Joining Pilgrim’s gives us the opportunity to accelerate our growth plans, share best practices and leverage Pilgrim’s expertise

and operational excellence. Moy Park will provide Pilgrim’s with a platform for growth in Europe as well as access to innovation and increased exposure to prepared foods.”

Another new arrival in Europe is Thai meat group Charoen Pokphand Foods which has acquired a 33% stake in SuperDrob, the Polish poultry business, for Eur49.5 million. A recent acquisition deal, which has further consolidated the European meat and poultry sector, is the Eur94 million purchase of Manor Farm, the largest chicken processor and market leader in the Republic of Ireland, by Scandi Standard, the leading chicken producer in the Nordic region.

Similarly, ABP Food Group, which is one of Europe’s leading privately owned agribusiness companies, has reinforced its position as the largest beef processor in Ireland and the UK by extending its joint venture arrangement with Northern Ireland-based Fane Valley Co-operative Society. ABP Food Group has taken a 50% stake in Linden Foods, the UKbased meat processing business of Fane Valley. The Linden Foods joint venture between ABP Food Group and Fane Valley represents the latest stage in the continuing consolidation of the Irish and UK meat processing industries. Dawn

Meats and Dunbia recently formed a strategic partnership to establish a joint venture comprising the UK operations of both organisations.

Consolidation Over half of EU meat production by volume is now generated by 100 companies and about a third is controlled by the top 15 European meat processors – Vion Food, Danish Crown, Tonnies, Bigard Group, Westfleisch, LDC, HKScan, Veronesi Group, Cooperi, Doux Group, Plukon Food Group, Terrena, ABP Food Group, Moy Park (now owned by Pilgrim’s Pride Corporation) and 2 Sisters Food Group (Boparan).

The major processors have been investing to improve efficiency and reduce costs while also securing more integrated and transparent supply chains, especially in the light of the increasing focus on food safety standards in meat and poultry processing, particularly in the UK after a recent investigation at 2 Sisters Food Group.

Concerned about recent instances of companies breaching hygiene rules, the Food Standards Agency and Food Standards Scotland have launched a comprehensive review of sites where meat products are processed and stored in the UK. The FSA has announced that it will

Tonnies plans to invest up to $95 million building the first stage of a slaughterhouse complex in southern Russia.

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work with industry to implement CCTV across cutting plants, and increase intelligence gathering through audit data sharing pilots across the supply chain in order to improve insight into circumstances and factors leading to non-compliances and the ability to anticipate them.

Adam Couch, chief executive of Cranswick.

Major Investment Projects There are a number of planned, ongoing and recently completed major investment projects across the meat and poultry industry in Europe. For example, HKScan, the leading Nordic food company, recently opened a new, Eur80 million state-of-the-art poultry unit at Rauma in Finland. Campofrio Food Group has opened its new Eur225 million factory at Burgos in Spain which is now supplying the Spanish and European markets but will extend its export activity to other continents: A number of processors are expanding in Eastern Europe by investing in processing plants. Tonnies plans to invest up to $95 million building the first stage of a slaughterhouse complex in the Belgorod region of southern Russia, while Hilton Food Group, the specialist retail meat packing business supplying major international food retailers in Europe and Australia, is building a Eur6 million factory in Poland.

Cherkizovo Group, the largest vertically integrated meat and feed producer in Russia, has commenced construction of a new Eur88 million meat processing plant at Kashira in the Moscow region.

Developments in the UK In the UK, Moy Park is investing £170 million across its sites in Northern Ireland and £20 million in a hatchery at Newarkon-Trent in England. Meanwhile, 2 Sisters Food Group has embarked upon a £150 million investment programme across its UK poultry business.

Cranswick, the £1 billion turnover UK

fresh pork, convenience foods and poultry business, has invested in excess of £200 million in its infrastructure over the last eight years and has plans for a new primary poultry facility at Eye in Suffolk. “This class-leading facility, which is scheduled for completion in late 2019, will double our existing capacity with further room for expansion,” points out Adam Couch, chief executive of Cranswick. “The facility will incorporate the highest animal welfare standards and latest generation production techniques and equipment to drive operational efficiency gains. We also plan to upscale our feed mill and hatchery operations to maintain our fully integrated supply chain model.”

In Scotland, Scotbeef, one of UK’s largest privately owned fresh meat companies, is investing £17 million in a new abattoir and meat processing facility at Inverurie.

Transformational Change 2 Sisters Food Group is undergoing a transformational change following the decision by Ranjit Singh Boparan, cofounder, owner and chief executive of Britain’s biggest food manufacturer and one of Europe’s largest poultry processors, to step up into the position of president of Boparan Holdings, the parent company of 2 Sisters Food Group.

Ranjit Singh Boparan comments: “I am fully committed to building a better, more transparent business, modernising our company and simplifying our operations.

I want to take a broader industry leadership role and concentrate more on the

Ranjit Singh Boparan, president of Boparan Holdings, the parent company of 2 Sisters Food Group.

issues and challenges that affect not only our business, but also the food sector in general such as Brexit, social responsibility and sustainability.”

Ranjit Singh Boparan adds: “These changes are the right ones to make at a very important stage in our business’s history and they help secure strong foundations for future development and growth.

These are further major transformative steps in a journey to build a better business with a world-class leadership team.”

Expansion in China Two of Europe’s top 15 meat and poultry companies are stepping up their activity in China. Danish Crown’s subsidiary Tulip Food Company has been granted permission to export both sausages and canned

Cherkizovo Group, the largest vertically integrated meat and feed producer in Russia, has commenced construction of a new Eur88 million meat processing plant at Kashira in the Moscow region.

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products to China. “In my opinion, the Danish Crown Group will soon have an almost ideal set-up in China. Extensive and well-established exports of fresh pork from Denmark will now be boosted by heat-treated products such as sausages and canned products. This will soon be complemented with local production based on Danish raw materials, which will put us in an extremely strong position in what in the space of just a few years has become one of Danish Crown's most important markets,” says Jais Valeur, group chief executive of Danish Crown.

HKScan plans to establish a new footprint on the Chinese market with premium-category, value-added products such as sirloin and tenderloin, products the company has previously offered largely only in the Nordic region. HKScan is the

Jari Latvanen, president and chief executive of HKScan Group.

first Finnish company to establish a presence in premium market niche in China.

Jari Latvanen, chief executive of HKScan, explains: “By commercializing and offering products in the premium category, we are taking the world-class expertise of Finnish pork producers to a whole new level of added value. This creates new revenue opportunities throughout our entire production chain and builds confidence in the international competitiveness of Finnish food production. Competition is fierce all around the world, and China is no exception – only the most competitive products make the cut. Our key competitive advantage is our diligent control of the entire value chain from farm to fork, which has convinced our Chinese partners of our reliability.” J

‘Crisis’ – New Report Shows Brexit Impact on Europe’s Meat Industry A hard Brexit will have a ‘catastrophic impact’ on the European Meat Industry, according to a stark new report published by UECBV (European Livestock and Meat Trades Union), as the UK and EU continue negotiations.

‘Crisis – The EU Meat Industry in a Hard Brexit scenario’ report was commissioned by UECBV and carried out by Red Flag Consulting, to analyse the potential impact of a hard Brexit scenario. It found that a ‘no-deal’ outcome would lead to: • Trade collapsing - an 84% drop in beef trade between the EU27 and UK; • Market price shock – The value of EU pig meat production would drop by Eur2.3 billion, and beef by Eur2.4 billion; • Job losses – at least 32,000 job losses across the EU at farm level, through processing and distribution.

In this scenario, meat products would face greater burdens than almost any other sector: • Higher WTO tariffs than any other sector; • Additional costs of veterinary checks, in addition to the customs checks faced by all goods; • Major disruption to supply chains and chaos for just-in-time fresh meat delivery systems.

The comprehensive report modelled the impact of a hard Brexit on trade between UK and EU for meat products and found that with increased costs imposed by tariff barriers, additional veterinary checks and increased transport costs would lead to a reduction of trade in meat from EU to UK by up to 84% for beef, 76% for sheep meat and 48% for pig meat. The price shock will decrease the value of EU meat production

by Eur2.4 billion for beef and Eur2.3 billion for pig meat.

The report finds a hard Brexit scenario will have a profoundly negative impact on the EU meat market given the major trade flows between EU27 and UK. As the UK has a principally deficit

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meat market, the negative impacts will be felt throughout EU. As meatprocessing involves the disassembly of carcass to a myriad of consumer cuts and products, it thus has to find markets for all parts of the carcass and therefore the impact will be transmitted throughout the single market to affect all countries, even those with limited direct trade with UK. ‘The magnitude of shock of a hard Brexit would be significantly greater than the industry crisis created by the Russian food import ban in 2014, and it would be much more difficult to find alternative markets for diverted products,’ the Report highlights.

In addition, there will be major disruption to modern fresh meat and just-in-time trade flows which are underpinned by sophisticated logistics systems, creating further losses for the meat sector, and depriving consumers in the UK of fresh meat supply.

The Report also concludes that solutions will be needed to minimise disruption and disaster for the European meat industry. The Report recommends: • A timely and sufficiently long transitional period to allow businesses to adjust to new arrangements; • A future trading relationship that creates minimal burden for business, especially SMEs, and maintains current trading conditions as much as possible; • Ensure continued regulatory convergence between UK and EU; • Implement market support mechanisms including increased market access, internationally simplified transit systems, and vital investment in port facilities.

Philippe Borremans, chairman of UECBV, comments: “The findings contained in this Report confirm our worst fears: A hard Brexit would send shock waves through the whole European meat industry, destroying jobs, increasing consumer prices, and devastating the livelihoods of small business owners working in our sector. The scale of this crisis is simply too great to ignore, and we implore policymakers to follow through on recommendations put forward in this Report and to protect this vital European food sector.”

FOOD & DRINK BUSINESS EUROPE, MARCH/APRIL 2018

I NUTRACEUTICALS

Focusing on the Future – Vitafoods Europe 2018 – 15-17 May 2018, Palexpo Geneva ith consumer awareness of functional W nutrition higher than ever, and science and technology driving exciting new innovations, the future for nutraceuticals is looking bright. In fact, a survey by the organisers of Vitafoods Europe – which takes place between 15 and 17 May 2018 in Palexpo, Geneva – shows that 92% of industry professionals feel either quite positive or very positive about the future for their company (up from 88% last year).

Almost half (48%) see increasing consumer awareness as one of the biggest opportunities for their business, followed by innovation through new ingredients (37%) and growth in developing markets (27%).

Vitafoods Europe has undergone a series of improvements to ensure the industry makes the most of such opportunities. The 2018 event will provide valuable insights into the big trends and scientific advances shaping the future, as well as offering expert advice to help visitors overcome challenges.

The event is expected to attract over 21,000 visitors and over 1,100 exhibitors, but despite enjoying a record-breaking year in 2017, the event’s organisers have not stood still. Based on feedback from visitors, the team has adapted and expanded popular attractions and resources.

New Ingredients Zone For example, the New Ingredients Zone will for the first time include an Ingredients Theatre where visitors can find out more about specific ingredients, products and services through case studies and presentations and an interactive demonstration area will offer a new Sports Nutrition Theatre, as well as a sampling bar and

product showcases.

This year’s survey reveals a three-way tie at the top of the nutraceutical agenda.

Healthy ageing, general wellbeing and digestive health, each chosen by 23% of survey respondents, ranked jointly as companies’ most important health benefit areas.

Reflecting the importance of healthy ageing, the Vitafoods Life Stages Theatre will offer expert sessions on nutrition requirements from infancy to later life. Speakers will include Dr Emma Schofield, Global Food Science Analyst at Mintel, will discuss food, drink and healthcare for seniors of different age groups.

The Vitafoods Europe survey shows how the industry is investing heavily in research and development. Almost half (46%) of respondents said their companies will spend at least 10% on R&D in the current financial year, and over a third (37%) said their investment would be even higher next year.

Innovation Reflecting this spirit of innovation, Vitafoods Europe will offer visitors a range of opportunities for discovery.

For those looking for something new for their business, the New Ingredients Zone will showcase the latest ingredients and raw materials, and the New Products Zone will display the latest functional foods and beverages – from teas, bars and

powders to health shots and chewable vitamins.

In a fast-moving consumer-led industry, the importance of marrying future trends with the latest scientific research has never been greater.

Vitafoods Education Programme The Vitafoods Education Programme, which runs alongside the main trade show, brings together big names from academia and industry. The interaction between them, and the value it creates for businesses, is a core element of the event. After securing in-depth feedback from delegates through research and interviews, Vitafoods Europe is proud to present a new, improved, more interactive Education Programme in 2018. For the first time, it will include seven Interactive Round Table Discussions to encourage the sharing of best practice and peer-to-peer networking.

And a new one-day pass option will allow time-pressured delegates to take part in the forums on a cost-effective basis.

Over the past two decades Vitafoods Europe has earned a reputation as the place where professionals from across the global nutraceutical supply chain meet to create products that deliver optimal health. It is the perfect platform for both established brands and smaller companies with products, ingredients or services to launch or showcase.

Register now to attend Vitafoods Europe for FREE and find out more at www.vitafoods.eu.com. J

FOOD & DRINK BUSINESS EUROPE, MARCH/APRIL 2018

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I SWEETENERS

Stevia Use In Beverages and Foods Continues to Increase

ureCircle, the world’s leading producP er and innovator of stevia sweeteners for the global beverage and food industries, reports that the use of stevia leaf sweetener in beverages and food products continues to expand.

Global launches of beverage and food products containing stevia have grown steadily since 2012, and in 2017 alone, increased more than +10% vs. 2016. That data, and all data contained herein, is from Mintel Group.

Looking at results separately for beverages and foods, launches of beverage products containing stevia grew 11% from 2016 to 2017. Launches of food products containing stevia grew 10% from 2016 to 2017.

Important Ingredient As this data shows, stevia is quickly becoming an important ingredient for beverage and food companies. Top categories for launches containing stevia in 2017 included snacks, juice drinks, dairy, carbonated soft drinks and confectionery.

Producers of food and beverage products designed for kids (age 5-12) are also making more use of stevia, as it enables them to formulate products with no- or reduced-calories using a plant-based sweetener. In 2017, launches of products 34

containing stevia with a claim for kids (aged 5-12) increased 16% from 2016.

Major companies launching products with stevia leaf sweetener last year included the following (in alphabetical order): Calbee Foods, The Coca-Cola Co, Groupe Danone, Grupo Bimbo, Kraft Heinz, Nestle, PepsiCo, Seven & i Holdings; and Unilever. Due largely to PureCircle’s research, development and innovation, stevia offers beverage and food companies a zero-calorie, plant-

based sweetener that has a taste profile similar to sugar.

Made From a Plant Stevia is a zero-calorie sweetener made from a plant. Other major zero-calorie – or high-intensity sweeteners (aspartame, sucralose and acesulfame potassium) are

not. The usage of stevia leaf sweeteners has grown dramatically. In 2012, stevia was used in 16% of food and beverage products launched with high intensity or diet sweeteners. By 2017, that number has risen to 28%.

Aspartame, however, is becoming less widely used. In 2012, aspartame was used in 36% of new foods and beverages utilizing high intensity sweeteners. By 2017, that number was down to 25%. That means, looking at foods and beverages launched with high intensity sweeteners in 2017, plant-based stevia was used more than aspartame.

The beverage and food product launches with stevia are occurring worldwide with all global regions participating. The top two regions were Asia/Pacific (40%) and Europe (22%), followed by Latin America, North America and Middle East/Africa.

Evolving Story The story of stevia is evolving. Not long ago, it was a little known, plant-based zero-calorie sweetener - basically one ingredient - that worked well in some beverage and food applications. But today, we offer a range of stevia leaf sweetener ingredients with sugar-like taste and zero calories. These fromnature sweeteners - often used in combinations with each other - work well in a wide variety of beverages and foods, and that is advantageous for beverage and food companies.

They have an increasing need for just such an ingredient, because consumers, health experts and governments have become increasingly concerned about obesity and diabetes, and consumers have become increasingly health and wellness conscious.

PureCircle works with food and beverage companies to make formulation with stevia simple and has the capacity to supply ample amounts of the best-tasting stevia sweeteners using its proprietary Starleaf plants. For more information on PureCircle, stevia and Starleaf visit www.purecircle.com. J

FOOD & DRINK BUSINESS EUROPE, MARCH/APRIL 2018

I SWEETENERS

8th World Convention on Stevia – June 4-5, 2018 – Berlin

rganised by the World Stevia O Organisation (WSO), the 8th World Convention on Stevia will be held in Berlin on June 4-5, 2018. Stevia is currently considered as the ‘green gold’, as a natural sweetener used to reduce sugar and synthetic sweeteners. Moreover, Stevia as a natural and antioxidant ingredient can be used for the prevention of chronic diseases such as obesity, diabetes, cancer, and cardiovascular diseases.

Stevia Organisation (WSO): “Nowadays, consumers need a neutral taste adapted to their culture.

During the previous editions of the convention, the main question remained unanswered was: ‘How to limit and hide the aftertaste of Stevia in Food & Beverages?’.

For the future, I’m afraid of the risk that consumers won’t accept Stevia formulated products if industrialists can’t anticipate and find an urgent solution for

Stevia Taste. We have to react quickly to ensure the future of Stevia as natural sweetener.”

The main challenge of the 8th World Convention on Stevia and Food & Beverages is to find the perfect combination in terms of formulation and to determinate how to reach the perfect balance.

The latest research, innovations and successful products formulated with Stevia will be presented at the event.

Stevia Tasteful Awards 2018 At the end of the conference, the attendees will be invited to taste and judge some Stevia Finish Products and Stevia Extracts in order to discern the Stevia Tasteful Awards 2018. Two categories will be awarded: * Stevia Tasteful Award - Finish Product Category * Stevia Tasteful Award - Extract Category.

For further information visit www.wso-site.com. J

Why a specific Conference dedicated to Food and Beverages Formulated with Stevia?

According to Professor Gerd Birkenmeier, President of the World

Nestlé’s New Milkybar is World First estlé UK and Ireland has unveiled N Milkybar Wowsomes, the first chocolate bar in the world to use Nestlé’s innovative sugar reduction technique.

Nestlé researchers made a scientific breakthrough when they transformed the structure of sugar through a newly developed process using only natural ingredients. Inspired by candy floss, experts created aerated, porous particles of sugar that dissolve more quickly in the mouth.

This allows someone to perceive the same level of sweetness as before while consuming less sugar.

With the help of this new technology, Milkybar Wowsomes has 30% less sugar than similar chocolate products and contains no artificial sweeteners, preservatives, colours or flavourings. Milkybar Wowsomes has milk as its number one ingredient, contains crispy oat cereal pieces, is a source of fibre and is gluten free. The range has products in a number of different sizes for different occasions and the largest sized bars are 18g and have 95 calories each.

The achievement is all the more impressive as it has taken little over a year

for Nestlé teams in Switzerland, the UK and the Czech Republic to take the scientific and technological breakthrough and turn it into a new confectionery product.

Stefano Agostini, CEO of Nestlé UK & Ireland, says: “We have an unrivalled research and development network and the experts at our Product Technology Centre in York have been instrumental in this breakthrough. Teams across our UK business and around the world have been

working incredibly hard to make this launch a reality.”

He adds: “A new product like Milkybar Wowsomes introduces greater choice and allows parents to treat their children with chocolate that tastes great but has less sugar. We are demonstrating how we can, and will, contribute to a healthier future and that we take our public health responsibilities very seriously.” J

FOOD & DRINK BUSINESS EUROPE, MARCH/APRIL 2018

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DSM Launches Maxilact® Smart SM has launched Maxilact Smart, a new lactase enzyme. The D innovative Maxilact Smart enables a significant increase in production efficiency and capacity, allowing dairy producers to meet the growing demand for lactose-free dairy products.

As the trend towards healthier eating grows, so does consumer awareness for topics like digestive health. Lactose-free dairy has a stand-out health appeal, offering all the nutritional benefits of dairy while being easier to digest. Lactose-free is therefore one of the fastest growing segments in dairy, which creates new opportunities for dairy producers but also drives the need for a faster and more efficient production process.

“DSM is proud to introduce Maxilact Smart to enable our customers to grow their business with premium, lactose-free products,” says Merel Roes, Business Manager Milk Enzymes at DSM Food Specialties. “Inspired by feedback from our customers, our lactase experts developed this enzyme to have an impact on efficiency while maintaining a clean taste. Customers have confirmed in their trials that Maxilact Smart enables a double-digit increase in production efficiency by enabling faster production, meaning more throughput in less time.”

Maxilact Smart is the latest addition to DSM’s Maxilact range of lactase enzymes, consisting of pure, unique products that ensure a clean taste. The new enzyme is suitable for a variety of applications including milk and fresh dairy. It is easy to implement in production, and can be added before or after heat treatment. As it posi-

tively impacts production efficiency by enabling faster production, it contributes to sustainability objectives as well.

DSM was the first to commercialize lactase in 1964, and has continuously innovated to improve performance and taste. Today, DSM is the leading lactase supplier in the world, providing high quality products as well as in-depth application knowledge and technical expertise to enable healthier, more sustainable dairy for people across the globe. J

Orkla Food Ingredients Expands its AcrylamideReducing Yeast Technology Licence Agreement with Renaissance BioScience rkla Food Ingredients, a business area of Orkla, and Renaissance BioScience Corp. have agreed to expand their O licence agreement for Orkla to exclusively manufacture and sell Renaissance’s acrylamide-reducing yeast, Acrylow™, to food manufacturers in additional new markets in Poland, the Czech Republic and Slovakia. The agreement builds on the initial exclusive agreement implemented in 2017 that covered the Nordic and Baltic regional markets in Europe.

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“Since we finalised our agreement with Renaissance last year we have conducted several commercial trials, all of which have shown excellent results and successfully launched the product for sale in the Nordic markets,” says Thore Svensson, Senior Vice President of Orkla Food Ingredients. “Orkla is pleased to expand its agreement with Renaissance to include Poland, the Czech Republic and Slovakia, in order to make Acrylow™ available to food manufacturers in those countries.”

The agreement is timely given the European regulatory structure governing the acrylamide content of many food products and coffee came into effect on April 11th 2018.

Dr Cormac O’Cleirigh, Chief Business Development Officer for Renaissance BioScience, comments: “It’s gratifying to see that Orkla and its food manufacturer customers have found our acrylamide-reducing yeast to be effective and easy to use in trials with no sensory impact on the finished product. Orkla is a leader in food quality and safety, and Renaissance is pleased to be partnering with the company to bring Acrylow™ not only to the already licensed Nordic and Baltic markets but also to these new central European markets.”

Acrylow™ has shown excellent results in large-scale industrial trials in baked goods and snack foods, as well as in lab-scale tests in French fries, chips and coffee. This yeast was granted GRAS status by the US FDA in 2016 — the same status as conventional baker’s and brewer’s yeasts. It is patent-pending and was developed using classical non-GMO techniques. J

FOOD & DRINK BUSINESS EUROPE, MARCH/APRIL 2018